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Shaanxi Yanchang Petroleum Group

Shaanxi Yanchang Petroleum Group is a state-owned integrated oil and gas company headquartered in China. In 2019, it had USD 1.05 billion in revenue and 101,126 employees*. Yanchang Petroleum is engaged in the exploration, production, transportation, and sale of petroleum and natural gas. There is no evidence to suggest the company is strategically preparing for the low-carbon transition.

Summary

Shaanxi Yanchang Petroleum Group (Yanchang Petroleum) ranks joint 90th with an ACT rating of 0.4E-. The company states in its environmental, social and governance (ESG) report that it has adopted emissions reduction policies, but it has not set a specific target against which to measure emissions reductions performance.

The company’s product mix data indicates that it failed to drive any improvements in its scope 1, 2 and 3 emissions intensities between 2014 and 2019. There is a lack of information on its low-carbon transition plan and sales of low-carbon products, indicating it is not preparing to transition or align with a 1.5°C scenario. The company needs to improve its disclosure across the board, on targets, transition plan, and management of climate change issues.

*Employee figure as reported in 2020. This figure may include full- and part-time employees and workers, depending on the company’s reporting practice.

Ranking position: #90 /100
Total score: 1.0 /100
Performance score: 0.4 /20
Narrative Score: ABCDE
Trend Score: Trend line is up

Trend line is equal

Trend line is down

Performance module name	Performance module score	Rank (0-100)
Targets	0.0 /100	#38
Material Investment	0.8 /100	#77
Intangible Investment	0.0 /100	#20
Sold products	0.0 /100	#55
Management	2.8 /100	#85
Supplier Engagement	12.5 /100	#33
Client Engagement	5.0 /100	#39
Policy Engagement	10.0 /100	#69
Business Model	0.0 /100	#52

Leading practices

No leading practices were identified for this company.

Targets: Yanchang Petroleum does not report specific emissions reduction targets or commitments. The lack of publicly disclosed targets suggests that Yanchang Petroleum’s management is not focused on reducing its scope 1 and 2 or its scope 3 emissions and is lacking internal planning towards a low-carbon transition.
Sold product performance: Yanchang Petroleum has launched a coal-to-ethanol pilot project in China’s Shaanxi province with a production capacity of 100 kilotons (kton), but plans to ramp up the commercial development of this project to reach a capacity of 500 kton. However, the company only reports information on the production side of this project. More information on the company’s sales and development strategy for this project is needed to demonstrate that this energy efficiency service can be a viable product to be sold to clients.

Trend

Yanchang Petroleum receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. Based on the company’s fuel and product mix performance, it is projected that its scope 1 and 2 and its scope 1, 2 and 3 emissions intensities will diverge further from its 1.5°C pathway. The company does not have any emissions reduction targets in place to reverse these trends. The company has committed to developing CCUS capacity by 2020 and has piloted a coal-to-ethanol project. Aside from this, there is no evidence to suggest the company is strategically preparing for the low-carbon transition.

Commitment: Yanchang Petroleum states in its ESG report that it has adopted emissions reduction policies. However, not enough information has been found on the company’s specific targets or commitments.
Transition plan: Yanchang Petroleum does not report any details indicative of its level of commitment to transition to low-carbon technologies.
Present: Although Yanchang Petroleum has committed to developing a carbon capture, use and storage (CCUS) project with a 1 million ton commercial capacity by 2020, there is no information available on the company’s capital expenditure (CapEx) for this project or for other low-carbon technologies. The company has piloted a coal-to-ethanol project.
Legacy: Yanchang Petroleum’s fuel mix has remained unchanged between 2014 to 2019 and its sales of fossil fuels has increased over this period, increasing the company’s divergence from its 1.5°C pathway.
Consistency: No details have been found on Yanchang Petroleum’s targets and low-carbon transition plan. There is no evidence to indicate the company is offering energy efficiency services as a sold product for clients.

More about the company

Headquarters: Xi'an, China
Group revenue: (2019) HKD 8.20 billion (USD 1.05 billion)
Ownership structure: State owned
Number of employees: 101,126
Scope of activity: Integrated
Website: http://www.yanchanginternational.com/en/index.php

Shaanxi Yanchang Petroleum Group

Leading practices

Risks and opportunities

Targets

Sold product performance

Trend

Progress towards the Paris Agreement

Commitment

Transition plan

Present

Legacy

Consistency

More about the company